Regularly reviewing expenses and keeping them to a minimum is key to operating a profitable restaurant. A restaurant is an environment where it can be easy for an exorbitant level of unnecessary costs to exist. Expenses need to be carefully analyzed to create an optimal balance between providing customers with an exceptional experience and generating a reasonable income.

There may be one or a combination of areas where expenses can be reduced. The following items should help you identify what actions you can take to improve your restaurants bottom line.

1.Control Inventory

Maintain a reliable system of electronically tracking stock from when it is ordered to when it is plated. This can help pick up overuse of ingredients, mistakes in orders, or theft of stock. It is also important in keeping stock levels to the minimum required. This avoids waste through spoilage or through a reduced need for the item if the menu or demand changes.

2.Review Suppliers and Products

Established restaurants tend to stick with the same suppliers. However, it is worth taking the time to contact other suppliers and sample their products. You may find that they offer many of your ingredients or just a key product at a similar standard with a lower price.

3.Reduce Employee Hours

Are two people doing a job that could be done by one? Are staff working longer hours than are needed? A streamlined set of processes can increase efficiency of employees. The working schedules of staff should fit in to demand rather than follow an exact routine.

4.Develop Multi-Skilled Staff

There is no reason why a waiter can’t assist behind the bar or in cleaning dishes. Train your employees to slip into almost any role in the restaurant as required. This can reduce labor costs, keep the number of staff to a minimum and develop an interactive team environment.

5.Standard Portion Size

From the number of prawns to the size of a chicken breast, every menu item should have a specified serving size. If the kitchen staff are having trouble with this, a set of scales can be used for plated meals to check the weight of each dish against the ideal size until they become adept to precise use of ingredients to match the requirements.

6.Prevent Theft

Alcohol and cash are the most attractive items for would be thieves, whether they are staff or intruders. An employee taking small amounts of cash every night adds up quickly and can cause financial damage for the business. The most expensive items in your restaurant should be kept under lock and key while not in use and monitored closely during service times.

Read about some more tips to prevent theft.

7.Require Approval for Discounts

Some employees offer their friends and family discounts or free meals every time they visit the restaurant. If your restaurant doesn’t already have a clear policy on this, one should be implemented. Whether discounts and freebies are allowed or not, these functions should be disabled on cash registers and require manager override and approval.

8.Utility Management

The use of gas, electricity and water can be effectively managed to save on expenses. It should be a general policy that taps, cooking equipment, climate control and lights are switched off when not in use. Small changes, such as turning off the oven between lunch and dinner service, can make a noticeable difference to profit.

While these are all feasible options to reduce restaurants expenses, possible changes to the customers dining experience need to be explored before any actions are taken. Actions that are likely to produce negative affects, such as poor service or a lower standard of food, should be avoided as they won’t be viable in the long-term.